Ernest want to buy a car costing R120,000.He want to pay cash for this model of car can only do this in one and a half years time. If the inflation rate is running at 7% per annum,calculate the cost of this car in one and a half years time.

120000*(1.07)^1.5

SAVE R2000 CASH R9999 DEPOSIT R1000 TERM 24MONTHS MONTHLY INSTALMENT R484,96 ANNUAL INTEREST RATE 26% TOTAL REPAYABLE R13817,66 WHAT IS DEPOSIT IF YOU WISH TO TAKE OUT THE HIRE PUT CHADGE LOAN?

To calculate the cost of the car in one and a half years time, we need to take into account the inflation rate.

First, let's calculate the inflation factor using the formula:

Inflation factor = (1 + Inflation rate)

Inflation rate is given as 7% per annum, so the inflation factor will be:

Inflation factor = (1 + 0.07) = 1.07

Next, we need to calculate the future value of R120,000 after one and a half years.

Future value = Present value * Inflation factor

Future value = R120,000 * 1.07

Future value = R128,400

Therefore, the cost of the car in one and a half years time, taking into account the inflation rate of 7% per annum, will be R128,400.